KANNAWAY COMPENSATION PLAN 1 KANNAWAY COMPENSATION PLAN 2015 WWW.KANNAWAY.COM

KANNAWAY COMPENSATION PLAN 1 KANNAWAY COMPENSATION PLAN 2015 WWW.KANNAWAY.COM

KANNAWAY COMPENSATION PLAN 2 The world has never seen a company as unique and refreshing as Kannaway, and we know that our Brand Ambassadors are the driving force behind our success. Together with our Brand Ambassadors, we are creating a culture that is truly enriching the lives of people around the world. To bring this vision into reality, Kannaway has established a generous and straightforward compensation plan that rewards our Brand Ambassadors! Unlike other home-based businesses, Kannaway gives you the tremendous earning potential you desire, without all the negative aspects that make it difficult for you to achieve success. THERE ARE 2 REQUIREMENTS TO EARN COMMISSIONS Requirement 1: Register to become a Kannaway Brand Ambassador (Independent Business Owner) by enrolling online and paying the required Brand Ambassador fee that fits your budget. $9.99 monthly or $49.99 annually The Brand Ambassador fee will be debited each month on the monthly anniversary date or annually on the annual anniversary date. THE BRAND AMBASSADOR FEE INCLUDES: Replicated Kannaway Websites Kannaway Secure Back Office Kannaway Training and Support Tools Administrative Support Requirement 2: Maintain the minimum Personal Business Volume (PBV) required for your rank each month, either through customer sales or personal orders. Disclaimer: In the Kannaway program, there is no purchase of product required to be a Brand Ambassador. The only required fee to become a Brand Ambassador is the Brand Ambassador fee. There are no commissions generated or paid on the Brand Ambassador fee. Kannaway only pays commissions from the sale of products, not from the recruitment of Brand Ambassadors. As a Brand Ambassador (Independent Business Owner), it s important to understand how you get paid. A portion of each sale generated within your organization may trigger one or more ways for you to earn commissions. As you read through this compensation explanation, you ll understand how you re rewarded in each area of the compensation plan. It is important to understand that only qualified Brand Ambassadors earn commissions and in order to receive commission overrides on your group sales you will need to satisfy minimum personal sales requirement based on your rank. For further explanation see rank and pin levels below.

KANNAWAY COMPENSATION PLAN 3 NOW IT IS TIME TO BECOME STAR QUALIFIED When a Brand Ambassador generates at least 160 Personal Business Volume (PBV) through a combination of customer sales or personal purchases in their first 30 days, they become 1 Star qualified, which opens up the ROQ Star Challenge. Becoming 2 Star and 3 Star Qualified gives you additional days to become a Rising Star and also opens up other possibilities to earn additional commissions. See the Chart below for volume requirements: A Brand Ambassadors Star level qualification is progressive over their first 30 days. Meaning if a Brand Ambassador purchases one of our discounted Essential Value Packages, they would have personally generated 160 in Personal Business Volume (PBV). Then over the course of their first 30 days they sold 160 BV in products through their website to retail customers, they would have generated a total PBV of 320 PBV qualifying them as a 2 Star giving them 45 days to achieve Rising Star. WITHIN YOUR FIRST 30 DAYS SHOOT TO BECOME A RISING STAR Every new Brand Ambassador is given 30 days from their start date to become a Rising Star and if you become 2 or 3 star qualified Brand Ambassador you will receive bonus days as described above in the Star Qualifications. Brand Ambassadors become Rising Stars when they personally sell a Kannaway Value Package to 3 new customers and/or Brand Ambassadors or generate a minimum of 710 PBV in Customer Sales during their Rising Star Period. If a Brand Ambassador is a Rising Star, their Direct Sale Bonuses (DSB) on Value Packages will retroactively triple once the third sale is made. The Brand Ambassadors will continue to earn triple DSB commissions on each qualified Value Package they sell during their Rising Star period. NOTE: A Brand Ambassador s Own Purchase does not count towards their Rising Star Qualification, only their Star Qualification. Star Qualified Brand Ambassadors Get to Participate In The ROQSTAR CHALLENGE ROQStars are the heartbeat of the Kannaway business model.

KANNAWAY COMPENSATION PLAN 4 Achieving ROQstar status earns Brand Ambassadors up to $1,000 in additional bonuses known as a ROQ Lifestyle Bonus paid over 2 months. To become a ROQstar you must achieve the following: 1, 2 or 3 Star Qualify within your first 30 days. Rising Star Qualify during your qualified Rising Star Period. Generate at least 9,000 in accumulative Qualified Group Volume (QGV) within 4 levels in your first 60 Days with no more than 60% of the Qualified Group Volume coming from 1 leg or team. Generate 110 in PBV in both the 2nd and 3rd months of being a Brand Ambassador (days 31-60 & days 61 90). In order to earn the full ROQ Lifestyle Bonus (paid over 2 months) Brand Ambassadors must submit verifiable proof they have Student Loans, paying College Tuition, have an active Health Insurance policy or have a child enrolled in a licensed Child Care program. A Brand Ambassador may also receive the full ROQ Lifestyle Bonus to apply toward their car payment or lease of a BMW, Mercedes Benz or Bentley not more than 5 model years old. If a Brand Ambassador cannot provide verifiable proof of any of the above qualifications, they will receive 50% of the ROQ Lifestyle Bonus paid over 2 months. After becoming a ROQstar, it is your opportunity to become a ROQstar Manager and earn a GUARANTEED $3500 in commissions during your first 90 days! There are two ways for a ROQstar to become a ROQStar Manager: The first is to generate 27,000 in accumulative Qualified Group Volume (QGV) within 5 levels during your first 90 days with not more than 60% coming from 1 leg or team. The second is to develop 3 ROQstars in 3 separate legs ROQstar Managers receive an additional $500 ROQ Lifestyle. 3 star qualified Brand Ambassadors who achieve ROQstar Manager will be guaranteed to earn a minimum of $3,500 in total commissions during their first 90 days. Like the ROQstar, ROQstar Managers must maintain a minimum of 110PBV in their 2nd and 3rd months, (days 31-60 & days 61 90) to earn the ROQstar Manager Bonuses. KANNAWAY CUSTOMER SALES Selling Kannaway products directly to customers builds a solid foundation for your Kannaway business. Direct sales to customers allow you to earn income by purchasing Kannaway products at wholesale prices and then selling them at retail, earning a wholesale-to-retail commission. Direct Sales Commission earned from retail sales is paid weekly.

KANNAWAY COMPENSATION PLAN 5 STOCK, ING, Kannaway Offers A Loyal Customer Program Some customers prefer to have their orders shipped directly to them each month without having to hassle with remembering to place a new order, which is what we call Smart Ship at Kannaway. Customers who enroll in the Smart Ship program become Kannaway Loyal Customers. Registration in the Smart Ship program is FREE and as a Kannaway Loyal Customer they will have the ability to buy their Kannaway products at wholesale and even earn FREE product by referring other Loyal Customers in our 3 and Yours is FREE program. The Kannaway Compensation Plan pays the Brand Ambassador that sells the Loyal Customer their product a 30% DSB commission and the other 70% of the commission value is paid to the upline team through the monthly residual commissions. The 30% DSB commission is paid weekly. As a Kannaway Loyal Customer they will be given a secure back office account to track their order history and manage their Smart Ship Deliveries. Loyal Customers will also receive a FREE Kannaway website to refer customers to and have the opportunity to earn FREE product in the 3 and Yours Is FREE Program. The 3 and Yours Is FREE Program is simple. Loyal Customers and Brand Ambassadors can earn FREE product by referring three Kannaway Loyal Customers (KLC). The amount of FREE product that can be earned is based on the average product orders of all their Kannaway Loyal Customers referred, not to exceed the Brand Ambassador or Loyal Customers Smart Ship order during the earned month. For example: If the Brand Ambassador or Loyal Customer s average product orders equal 55 BV (Business Volume) and the Brand Ambassador or KLC s Smart Ship order during that month was at least 55 BV, they would receive their following months Smart Ship order up to 55 BV for FREE. There are no commissions paid on free products earned. 3 and Yours Is FREE Program 1. Maintain an active monthly Smart Ship order of at least 55 BV in product orders. 2. Have at least three Kannaway Loyal Customers (KLCs) who each have a minimum active Smart Ship order of 28 BV each calendar month. When this occurs, your next month s Smart Ship order is FREE. 3. The amount of free product is be based on the total average order of their KLCs, not to exceed the Brand Ambassadors or Referring Loyal Customers Smart Ship order from the earned Month. *There are no commissions paid on FREE product DIRECT SALES BONUS: [DSB] One exciting benefit of joining most relationship marketing companies is they typical allow people to start a business with a much lower financial entry point then they would need to start a more traditional brick and mortar business. However, even though the start-up expenses maybe far less, there are still necessary

KANNAWAY COMPENSATION PLAN 6 expenses with starting any business. To help our Brand Ambassadors get their business into a profitable position as quick as possible Kannaway gives Brand Ambassadors the opportunity to earn a larger commission percentage during their initial startup period. When a Brand Ambassador personally enrolls a new team member, that new team member may choose to purchase Kannaway products to share and sell with their potential customers and prospects or to use personally. The commissions earned from these products sold is known as a Direct Sales Bonus (DSB). The enrolling Brand Ambassador will earn a 30% DSB on the new team members personal purchases during their first 30 days. The remaining 70% of the CV will be paid through the monthly residual commissions. Kannaway also offers Value Packages to both customers and Brand Ambassadors who are interested in saving money. Kannaway pays a special DSB on the first Value Package purchase. The commissions paid on Value Package sells is listed in the chart below. Any future purchases of Value Packages will pay based on the assigned BV through the residual portion of the compensation plan. Triple Direct Sales Bonus Brand Ambassadors who achieve Rising Star during their qualification Period will have their Direct Sale Commissions paid on all Value Packages tripled. The triple DSB will retroactively issue a triple commission on all qualified Value Package sales to that point and continue to triple them through the remainder of the Brand Ambassadors Rising Star Period. Lifetime Double and Triple DSB Bonuses Rising Star s who achieve the rank of 2 Star or 3 Star Brand Ambassador will earn double and triple Direct Sale Bonuses for life on qualified Value Packages they personally sell to Customers and Brand Ambassadors as long as they maintain a minimum of 110 PBV each month. NOTE: The Direct Sale Bonus is only paid on the first Value Package purchase made by each Customer or Brand

KANNAWAY COMPENSATION PLAN 7 Ambassador. Any additional Value Package sales will be paid based on the BV assigned through the monthly residual commissions. *All Direct Sale Income is paid weekly. 50% DSB Matching Bonus Duplication is the key to long-term success in Relationship Marketing and to help our Brand Ambassadors create a culture of teamwork we pay a 50% matching bonus on qualified Value Package sales to the qualifying team members. The DSB Matching Bonus is paid on the entire DSB earned even if it is a triple DSB. The 50% DSB Matching Bonus is split and paid as follows. 25% is paid to the enrollers sponsor and 25% is split between leadership rank codes and 4 levels of upline team members (following the sponsor tree) as shown in the charts below:

KANNAWAY COMPENSATION PLAN 8 9 Levels of Team Override Bonuses: As a Kannaway Brand Ambassador, your focus will be on creating a Retail and Loyal Customer base as well as building a team of Brand Ambassadors. As you progress through the Kannaway compensation program, you will earn increased Team Override Commissions from the product sales generated throughout your sales organization. Kannaway utilizes a Unilevel structure for our Team Override Commissions. Meaning, every Brand Ambassador will be automatically placed on their sponsor s first level unless their sponsor chooses to place them under a Brand Ambassador on their team. [Placement is an advanced organizational strategy. Ask your Team Leader for advice on the best strategy for building your Kannaway business.] The higher rank you achieve, the more levels you can earn commissions. The Kannaway compensation plan uses compression to allow Brand Ambassadors to earn on sales originating down deeper within their organization if someone in the organizational tree is inactive. This means any Customer or Brand Ambassador volume that is not generated from an active Brand Ambassador will compress and be counted within the volume of the level immediately above. Unilevel Placement Tree [ADD CHART] *Team Override Bonuses are paid monthly

KANNAWAY COMPENSATION PLAN 9 Rank Infinity Bonus The Rank Infinity Bonus allows Brand Ambassadors who have achieved the Paid As Rank of Executive Director/Silver/Gold/Platinum/Double Platinum/Multi Platinum/Diamond & Legend to start earning a 1% commission on all qualified sales starting on their 6th level through infinity on the sales organization they built. The Generational Infinity Bonus pays a total of 14.5% of the CV through 2 generations, (7.25% on each generation) and is cumulative, meaning you can earn the total difference in bonus % between your rank and the rank of your team members. As a qualified Executive Director you will start earning a 1% Bonus on all sales starting with your 6th level through infinity, this is referred to as the 1st Generation Bonus. You will earn the 1st Generation Bonus down to the next qualified Executive Director in your Placement Tree Organization. At that point the new Executive Director will start earning the 1st Generation Infinity Bonus on their organization and you will start earning the 2nd Generation 1% Infinity Bonus on their organization. When a third Executive Director is encountered in the same organizational line of you will be blocked out, this is known as a breakaway and you stop earning the 2nd generation infinity bonus from that Executive Director and their organization. It s important to understand you will continue to earn the 1st generation & 2nd generation infinity bonus on the remainder of your organization as long as you have not encountered a third qualified Executive Director. In order to start earning the Generational Infinity Bonus on the breakaway organization you will need to achieve the rank of Silver at which time you will start earning the 1st generation Silver Bonus. Earning cumulative Generational Infinity Bonuses for multiple ranks is one of the exciting aspects of this bonus, meaning you have the ability to earn the bonus % from more than 1 rank. As an example, if you were a qualified Legend and had no Executive Directors or above in a specific leg you would receive the entire 1st generation Executive Director/Silver/Gold/Platinum/Double Platinum/Multi Platinum/Diamond & Legend Generational Infinity Bonus for each rank (7.25%). As soon as a Brand Ambassador in that leg achieves the rank of Executive Director you will start earning the 2nd generation infinity bonus below your new Executive Director. Coded Infinity Bonus Like the Generational Infinity Bonus, the Coded Infinity Bonus allows Brand Ambassadors who have achieved the Paid As Rank of Executive Director to start earning it. It also pays 14.5% of the CV through 2 generations (7.25% on each generation) and is cumulative, meaning you can earn multiple coded infinity bonus s on the same team. For example if you have Platinum, Gold and Silver coding on an individual you would earn all those coded infinity bonus on that individuals team. Once you achieve Executive Director you start earning the Coded Infinity Bonus on the very next Brand Ambassador and their team you personally enroll. Unlike the Generational Infinity Bonus, your coded team members don t breakaway from you. Once they are coded to you they remain coded as long as they remain active in Kannaway, no matter how large or how many levels their team grows. Another exciting feature of the Coded Infinity Bonus is you start earning the added bonus on level 1, which means you could increase your level 1 % override to as much as 9.25%. Like the Generational Infinity Bonus, the Coded Infinity Bonus also has 2 generations of code bonus paid at each rank. The major difference is with the coded bonus their entire team does breakaway from you once a 2nd BA achieves your same rank. That means your commissions shouldn t reduce, in fact if you ve built a growing healthy organization they will continue to grow and so will the coded bonus portion of your check.

KANNAWAY COMPENSATION PLAN 10 As you continue to achieve higher ranks in Kannaway you start earning that ranks Coded Infinity Bonus with the very next person you personally enroll. Like the Generational Infinity Bonuses, the Coded Infinity Bonus allows you to accumulate your coded bonuses for multiple ranks, meaning you have the ability to earn the bonus % from more then 1 rank. As an example if you were a qualified Legend you would receive the entire 1st generation Coded Infinity Bonus for each rank Executive Director / Silver / Gold / Platinum / Double Platinum / Multi Platinum / Diamond & Legend (7.25%) on all sales made by your newly enrolled Brand Ambassador and their entire organization starting with their level ROQ LIFESTYLE BONUS The Kannaway ROQ Lifestyle bonus can be earned through our ROQstar Challenge and when you achieve the Rank of Silver and maintain it for two consecutive months. Qualified ROQstar Managers who achieve the rank of Silver will start earning the Silver ROQ Bonus month one and are not subject to the two consecutive months requirement. The ROQ Lifestyle Bonus pays the following bonuses based on rank monthly if the Brand Ambassador provides proof to corporate that they own or a lease a BMW, Mercedes or Bentley that is no older than 5 years old, is paying a current college tuition or student loan, has active health insurance, or pays for their child to go to a licensed Day Care Center or Private School. If the Brand Ambassador does not qualify for any of the above, they will receive 50% of the bonus value. ORGANIZATIONAL STRUCTURE Sponsor Tree When a new Brand Ambassador is sponsored, they go into the Sponsor Tree as a Level 1, or frontline, to the Brand Ambassador who sponsored them. Direct Sale Bonuses (DSB), 50% Coded DSB Match and Coded Infinity Bonuses are paid based on the Sponsor Tree. The Holding Tank The Kannaway compensation plan allows the sponsoring Brand Ambassador the ability to sponsor a Brand Ambassador and place them under another Brand Ambassador on their team within 60 days from the date of enrollment. The sponsoring Brand Ambassador will still maintain sponsorship and will receive all sponsor bonuses. Placement Tree When a new Brand Ambassador is sponsored, they are automatically placed on their Sponsor s Level 1. However, at any time within the first 60 days of enrollment, the Sponsor may elect to place or move the enrolled Brand Ambassador above or under another Brand Ambassador in their organization. All products purchased or sold by the enrolled Brand Ambassador are commissioned based on their placement when the commission period ends. Placement is an advanced strategy that allows the sponsoring Brand Ambassador the opportunity to increase sales volume in an existing leg, and enables the new Brand Ambassador to gain additional support from a sales organization that is already in place. Rank advancement, 50% Level Check Match, Team Override Commissions and Generational Infinity Bonus are all based on the BV in the Placement Tree.

KANNAWAY COMPENSATION PLAN 11 RANK AND PIN LEVELS Brand Ambassador Pay the required $9.99 Monthly or $49.99 Annual Brand Ambassador Business Fee 30 Day Rising Star Qualification Period Retail & Loyal Customer Commissions Rising Star Bonuses DSB Sponsor Check Match 2 levels of Team Residual Bonus (see residual chart above for %) 1 Star Brand Ambassador Generate 160 PBV within the first 30 days from customer or personal sales Same as a Brand Ambassador plus the ROQstar Challenge Bonuses 2 Star Brand Ambassador Generate 320 PBV within the first 30 days from customer or personal sales 45 Day Rising Star Qualification Period Same as a 1 Star Brand Ambassador plus is eligible to earn the Lifetime Double DSB Bonus (see Lifetime Double DSB Bonus above) 3 Star Brand Ambassador Generate 480 PBV within the first 30 days from customer or personal sales 60 Day Rising Star Qualification Period Same as a2 Star Brand Ambassador plus is eligible to earn the Lifetime Triple DSB Bonus (see Lifetime Double DSB Bonus above) Director [DIR] Maintain at least 28 PBV monthly Maintain a minimum of 600 Qualified Team Volume (QTV) monthly

KANNAWAY COMPENSATION PLAN 12 Retail commission DSB Level Check Match 3 levels of Team Residual Bonus (see residual chart above for %) Senior Director [SD] Maintain at least 55 PBV monthly Personally enroll and maintain 3 active Brand Ambassadors placed in 3 separate legs Maintain a minimum of 3,000 Qualified Team Volume (QTV) monthly with not more than 60% from any one leg Retail commission DSB Level Check Match 4 levels of Team Residual Bonus (see residual chart above for %) Executive Director [ED] Maintain at least 110 PBV Personally enroll and maintain 3 active Brand Ambassadors placed in 3 separate legs Maintain a minimum of 9,000 Qualified Group Volume (QGV) monthly with not more than 60% from any one leg Retail commission DSB Level & Code Check Match 5 levels of Team Residual Bonus (see residual chart above for %) ED Rank Infinity Bonus ED Coded Infinity Bonus on new personally sponsored representatives after promotion to ED. Silver Maintain at least 110 PBV Personally enroll and maintain 3 Active Brand Ambassadors placed in three separate legs Maintain a minimum of 27,000 Qualified Group Volume (QGV) monthly with not more than 60% from any one leg Retail Commission

KANNAWAY COMPENSATION PLAN 13 DSB Level & Coded Check Match 6 levels of Team Residual Bonus (see residual chart above for %) ROQ Lifestyle Bonus Silver Generational Infinity Bonus Silver Coded Infinity Bonus on new personally sponsored representatives after promotion to Silver Gold Maintain at least 110 PBV in personal sales Personally enroll and maintain 3 Active Brand Ambassadors placed in three separate legs Maintain a minimum of 81,000 Qualified Group Volume (QGV) monthly with not more than 60% from any one leg Retail Commissions DSB Level & Coded Check Match 7 levels of Team Residual Bonus (see residual chart above for %) ROQ Lifestyle Bonus Gold Rank Generational Infinity Bonus Gold Coded Infinity Bonus on new personally sponsored representatives after promotion to Gold Platinum Maintain at least 110 PBV in personal sales Personally enroll and maintain 3 Active Brand Ambassadors placed in three separate legs Maintain a minimum of 150,000 Qualified Group Volume (QGV) monthly with not more than 60% from any one leg Retail Commission DSB Level & Coded Check Match 8 levels of Team Bonus ROQ Lifestyle Bonus Platinum Rank Generational Infinity Bonus Platinum Coded Infinity Bonus on new personally sponsored representatives after promotion to Platinum Double Platinum Maintain at least 110 PBV in personal sales Personally enroll and maintain 3 active Brand Ambassadors placed in 3 separate legs Maintain a minimum of 243,000 Qualified Group Volume (QGV) monthly with not more than 60% from any one leg

KANNAWAY COMPENSATION PLAN 14 Retail Commission DSB Level & Coded Check Match 9 levels of Team Bonus ROQ Lifestyle Bonus Double Platinum Rank Generational Infinity Bonus Double Platinum Coded Infinity Bonus on new personally sponsored representatives after promotion to Double Platinum Multi Platinum Maintain at least 110 PBV in personal sales Personally enroll and maintain 3 active Brand Ambassadors in three separate legs Maintain a minimum of 450,000 Qualified Group monthly with not more than 60% from any one leg Retail Commission DSB Level & Coded Check Match 9 levels of Team Bonus ROQ Lifestyle Bonus Multi Platinum Rank Generational Infinity Bonus Multi Platinum Coded Infinity Bonus on new personally sponsored representatives after promotion to Multi Platinum Diamond Maintain at least 110 PBV in personal sales Personally enroll and maintain 3 active Brand Ambassadors in three separate legs Maintain a minimum of 729,000 Qualified Group Volume (QGV) monthly with not more than 60% from any one leg Retail Commission DSB Level & Coded Check Match 9 levels of Team Bonus Diamond Rank Generational Infinity Bonus Diamond Coded Infinity Bonus on new personally sponsored representatives after promotion to Diamond Legend Maintain at least 110 PBV in personal sales

KANNAWAY COMPENSATION PLAN 15 Personally enroll and maintain 3 active Brand Ambassadors in three separate legs Maintain a minimum of 1,000,000 Qualified Group Volume (QGV) with not more than 60% from any one leg Retail Commission DSB Level Check & Coded Match 9 levels of Team Bonus Legend Rank Generational Infinity Bonus Leader Coded Infinity Bonus on new personally sponsored representatives after promotion to Legend DEFINITIONS Brand Ambassador Kannaway Independent Business Owner Active Brand Ambassadors are active when they are current with their Brand Ambassador Fee(s). Qualified - Brand Ambassadors are Qualified to earn commission overrides when they have meet their Personal (PBV) and Group Business Volume (GBV) requirement in product sales each month. Earned Rank The highest Pin rank a Brand Ambassador earns. This allows the Brand Ambassador to be recognized at that rank. Paid As Rank The rank a Brand Ambassador is for that commissionable period. Commissions are paid to each Brand Ambassador based on the rank they are for each commissionable period. It is possible that a Brand Ambassador s Earned Rank and Paid As Rank are different. Business Volume (BV) - The total volume assigned to each product. Commissionable Volume (CV) The total volume from which commissions are paid. Commissionable Volume equals 50% of the Business Volume (BV). Personal Business Volume (PBV) What is generated from all personal sales and personal customer sales. Group Business Volume (GBV) The total PBV generated through product sales made by Downline Brand Ambassadors Weekly Commissions Weekly commissions start on Friday at 12:00am PST and end on Thursday at 11:59pm PST; weekly commissions are available on the following Friday. Monthly Residual Commissions Monthly commissions start at 12:00am PST on the first day of the month and end at 11:59pm PST on the last day of the month. Monthly Residual Commissions will be paid on the 15th of the following month during our monthly commission run. Smart Ship Is an optional program that allows both Loyal Customers and Brand Ambassadors to have the products of their choosing sent to them automatically on approximately the same day each month.

KANNAWAY COMPENSATION PLAN 16 Retail Customer Is a Customer who is not enrolled in the Kannaway Smart Ship program. They do not receive the Kannaway wholesale price on their purchases. Loyal Customer Is a Customer who has enrolled in the Kannaway Smart Ship program to receive their selected product or products sent automatically each month. Loyal Customers purchase products at the Kannaway wholesale cost. Earned Month Refers to the month a qualification must be meet. A Brand Ambassador must all sales requirements to be eligible for commissions during that commission period. Dynamic Compression Each commission period Business Volume is compressed up the genealogy tree to the next qualified and active Brand Ambassador. Since it s possible for Brand Ambassadors may drop in their Paid As Rank from time to time the commissions normally paid to them will compress up for that pay period. If the Brand Ambassadors re-qualifies at their qualifying rank the next commission period the BV for that period will Dynamically adjust and pay them for that commission period. Grace Period If a leader a leader fails to maintain the necessary Qualified Team Volume (QTV) Requirements to maintain their Rank they will have the following number of days to bring their Qualified Team Volume (QTV) back up to meet their rank requirement before they loose their Rank.